Masimba revenue slumps
LETTICIA MAGOMBO
Masimba Holdings Limited’s profit in the 12 months to December 31, 2021 fell 12% to ZWL$7,35m from the same period in 2020 due to the slow start of some key projects in the fourth quarter of the reporting period, company secretary Pearl Mutiti has said.
“Resultantly, earnings before interest, taxes and depreciation decreased to ZWL$1,572m from ZWL$1m in 2020,” Mutiti said.
Profit for the group, however, increased to ZWL$985m in the reviewed period from ZWL$526m reported in 2020.
The group’s financial position strengthened to ZWL$11,4bn from ZWL$7,45bn in 2020 on the back of a deliberate effort by the board to preserve value through acquisition of property, plant and equipment, which were key to the group growth plans.
The group acquired plant and equipment worth ZWL$766m. In 2020, Masimba procured equipment worth ZWL$344m.
Mutiti said the company experienced an increase in demand due toc roads and earthworks, water, housing and mining infrastructure projects.
“Demand was owed to the government’s renewed interest in infrastructure development. In the property division the company focused mainly on refurbishment of its industrial assets to improve earning capacity,” she said.
Mutiti said refurbishments for one of the properties in Harare were substantially complete and plans were underway to refurbish, in the new financial period, other properties in Harare, Bulawayo and Gweru. In addition, a total land bank valued at ZWL$398m was acquired during the year, she said.
The group also established a quarry mining subsidiary in the fourth quarter in the form of Stemrich Investment (Private) Limited whose main purpose is to manufacture stone aggregates which are key in road construction, the benefits of which they expect to be seen in the next financial period.
